PRESS DIGEST- Canada - July 3

July 3 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL

** On the eve of a Throne Speech outlining Ontario Premier Kathleen Wynne's plan for her new majority mandate, Moody's has issued a stark warning on Ontario's growing deficit. The bond rating agency has changed its outlook on the province to "negative," cautioning its credit rating could be downgraded if it doesn't show progress either cutting spending or hiking revenues. (bit.ly/1lVPNAO)

** Kyle Lowry, the basketball veteran who led the Toronto Raptors to their first postseason appearance in five years, said on Wednesday on Twitter he's staying put. Lowry's deal is $48 million through four years with an opt-out after the third year, according to multiple reports. (bit.ly/1qAINfN)

Reports in the business section:

** Auto sales stayed in overdrive last month in Canada, putting six-month deliveries ahead of the record pace set last year. Canadians snapped up 175,428 new cars, trucks, crossovers and mini-vans in June, up 2 percent from 171,608 a year earlier and making last month the best June on record. (bit.ly/VgTBm4)

NATIONAL POST

* Toronto Mayor Rob Ford admitted Wednesday to using "every drug that you can think of" including crack, marijuana, cocaine and magic mushrooms but not heroin and never in his office, in his first one-on-one interviews since returning from addiction treatment. (bit.ly/VgTXsQ)

* Environment Canada is warning that tropical storm Arthur could impact Atlantic Canada this weekend. The Canadian Hurricane Centre says the storm is expected to intensify to hurricane strength overnight as it moves north-eastward up the East Coast of the United States. (bit.ly/1xl71eB)

FINANCIAL POST

* The Globe and Mail narrowly avoided a strike on Wednesday, with the parties agreeing to return to the bargaining table on Tuesday after unionized workers voted overwhelmingly to reject a contract offer from management. (bit.ly/1lVRcY1)

* Canada is one step closer to having a new airline after Canada Jetlines Ltd announced plans to raise $10 million and list on the TSX Venture Exchange. (bit.ly/1z9NZcY) (Compiled by Ankush Sharma in Bangalore)